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Homework Help personal finance?

What is the annual premium of Katy’s car insurance if the base premium is 0.25 and the rating factor is 2.35?

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This entry was posted on Saturday, February 6th, 2010 at 4:24 pm and is filed under Personal-Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “Homework Help personal finance?”

  1. northridgeville on February 6th, 2010 at 4:24 pm

    base premium * rating factor = annual premium
    $250.25 * 2.35 = annual premium

    Quite simply, an insurance rate considers all these factors and the insurance company assigns you a rating factor by which they multiply the base rate for each type of coverage. For example, a given insurance group may be priced at $200 per year for someone in a 35-40 year old age group, but if you are 16-21 your rating factor may be 1.5, you will be charged $300 ($200 X 1.5).